Find the Simple Interest

question 197

Multiple Choice

Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a year.)
-p = $4479, r = 0.05% per day, t = 6 months

• A) $470.30
• B) $403.11
• C) $0.45
• D) $335.93

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Definitions:

Financial Markets

Marketplaces where individuals and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.

Market Risk Premium

The added financial return that an investor predicts when opting for a market portfolio with inherent risk over guaranteed risk-free assets.

Expected Return

The weighted average of all possible returns from an investment, with the weights being the probabilities of each outcome.

Beta

The assessment of a stock's price movements compared to the aggregate market.